EC Approves Hungary’s Extension of VAT Deviation for Passenger Car Leases Until 2027

• The European Commission adopted a decision authorizing Hungary to extend its deviation from certain articles of the VAT Directive
• Hungary can continue limiting input VAT deduction rights on leases of specific passenger cars not used exclusively for business purposes
• Taxable persons are relieved from treating private use of such vehicles as supplies of services for consideration
• The deviation is extended until Dec. 31, 2027, and any further extension request must be submitted by March 31, 2027
• A report including a review of the percentage applied must accompany the extension request

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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